A Portfolio Has a Beta of 1

question 81

Multiple Choice

A portfolio has a beta of 1.23 and a standard deviation of 11.6 percent.What is the Sharpe ratio if the market return is 12.4 percent and the market risk premium is 7.9 percent?

• A) 0.07
• B) 0.11
• C) 0.65
• D) 0.84
• E) 0.90

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Definitions:

Weekly Prayer Meetings

Regularly scheduled gatherings, typically organized by religious groups, aimed at communal prayer and worship.

Require Employees

The necessity for businesses to hire workers in order to operate effectively, perform tasks, and achieve organizational goals.

Reasonably Accommodate

An obligation under certain laws for employers to make adjustments or modifications to the work environment that enable an employee with disabilities to perform their job duties.

Traditionally Recognized Religion

A faith or belief system that has been widely acknowledged and historically established among various cultures and societies.